4 Criteria for Evaluating Receivable Factoring Companies

evaluating receivable factoring

Choosing which factoring company to work with can have a big impact on your business—the right partnership will allow you to get great rates and immediate cash to keep your business running, while the wrong company could seriously hinder your business. Here are four criteria that you can use to compare and evaluate receivable factoring companies when deciding whom to work with.

Fees and Rates

The most important question for most companies is “how much will this cost?” As you are evaluating different companies, take into account their fee structure and the rates that they offer for financing receivables. There are also several factors that can influence fees and rates, such as your customers’ creditworthiness or the total volume of business you plan to do with the company. See how our rates and fees compare to our competition.

Timeline for Funding

The main reason most businesses decide to sell receivables is that they need cash right away to fund their operations, purchase inventory, or pay employees. For that reason you want to be sure you’re working with a company that can provide a quick decision and have the cash to you within a matter of days.


[box] Whether your business is thriving and you can’t keep up, or you are waiting on clients to pay their invoices, Universal Funding can help your growing company. Call us at 800.405.6035 or complete our rate form today to learn more about invoice factoring and how it can improve your company’s cash flow.[/box]


Available Credit Lines

One of the benefits of accounts receivable factoring is that you don’t need to take on additional debt in order to obtain working capital. You’re simply selling an asset that you already have, which often means that you can access more cash as your sales go up. By factoring invoices you free up traditional lines of credit that you may want to exercise in the future.


A great way to ensure you’re working with a reputable company is to hear it firsthand from their previous clients. Ask for referrals so you can get reviews from people who have worked with the company in the past and make sure they provide good customer service and don’t surprise you with hidden fees or charges down the road.

If you’d like to learn more about how invoice factoring can help your business, complete our rate form, or call us today at 800.405.6035 to speak with a factoring specialist.

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